Since 2016, new standards and stricter requirements have transformed the environmental and sustainability landscape—a trend set to intensify, with additional mandates expected through 2030. To maintain auditable environmental data and comply with various regulatory reporting requirements, organizations are increasingly investing in data management and software solutions to standardize and automate processes around emissions reporting.
WHAT YOU NEED TO KNOW
Key influencing regulations for environmental data management
Based on conversations with Sphera customers from traditionally high emitting industries and given the changing political landscape, we have identified the following key programs impacting environmental accounting processes:
California Climate Accountability Package
California passed multiple laws in 2023 related to GHG disclosures that impact companies operating in the state. California’s regulations generally have stricter requirements and earlier deadlines than EPA or other international standards.
- Senate Bill 253 (SB 253) requires companies with over $1 billion in revenue to publish annual greenhouse gas emissions data, covering Scopes 1, 2 and 3.
- Senate Bill 261 (SB 261) requires companies with over $500 million in revenue to disclose climate-related financial risks and mitigation strategies by January 1, 2026, impacting over 10,000 businesses.
- Assembly Bill 1305 (AB 1305) mandates reporting on net-zero emission claims for any business operating in California.
The Oil & Gas Methane Partnership 2.0
OGMP 2.0 is a voluntary UN methane emissions reporting program for the oil and gas industry. Approximately 95 companies currently participate, following a five-level reporting system with increasing detail:
- Level 1: Country, venture, or asset-level reporting with emission factors
- Level 2: Source category detail (e.g., venting, flaring) with emission factors
- Level 3: Source-level reporting using generic emission factors
- Level 4: Source-level data without generic emission factors
- Level 5: Reconciliation with independent site-level measurements for higher accuracy
Companies participating in the OGMP program agree to a goal to achieve Level 5 inventory methodology for methane emissions reporting within three years for operating assets and five years for joint ventures.
U.S. EPA Mandatory Reporting
The U.S. Environmental Protection Agency’s (EPA) mandatory GHG reporting rule, in place for over a decade, requires compliance-based reporting by industry category.
- The Mandatory Reporting of Greenhouse Gases (MRR) program, which covers scope 1 emissions, applies to facilities emitting over 25,000 metric tons of CO₂ equivalent annually and to companies supplying or importing products that, if used, would emit the same. Facilities injecting over 25,000 metric tons of CO₂ underground are also covered.
- This program mandates electronic reporting through the e-GGRT system, with strict validation, verification, and reporting requirements.
WHO THIS AFFECTS
Common challenges for environmental departments across industries
Environmental departments in emissions-intensive industries, such as Oil & Gas, Metals & Mining, Power & Utilities, Chemicals and Manufacturing, face similar challenges, intensifying with each additional regulatory requirement.
- High-quality operational data: Programs require precise data, often down to daily or hourly intervals, which demands significant effort to ensure data accuracy, especially in high-emission industries.
- Transparent and consistent calculations: Calculations must be clear, reliable and easily auditable to meet investor and regulatory requirements.
- Third-party audits: GHG calculations often need independent auditing, a common practice due to their impact on financial statements and in some cases, a regulatory requirement under SEC rules.
HOW SPHERA CAN HELP
How to tackle industry challenges with purpose-built software
SpheraCloud Environmental Accounting Software is built for large organizations in high-emitting sectors, helping customers in Oil & Gas, Metals & Mining, Power & Utilities, Chemicals and Manufacturing industries overcome data and reporting challenges associated with environmental emissions.
Award-winning calculation transparency
The award-winning calculation engine in SpheraCloud Environmental Accounting software stands out for its unmatched transparency, providing clear data and calculation logic that streamline audits from days to minutes. Robust, user-defined data quality rules ensure only verified data is used in emissions calculations, capturing all sources across global operations. With a drill-down feature, users can easily pinpoint emission reduction opportunities at every level, enhancing accuracy and consistency in reporting.
Reduced audit time
With these transparent calculations, companies can simplify environmental accounting and drastically reduce audit time. All data and expressions are centralized for easy access, enabling quick analysis to assess whether operational data shows anomalies. Auditors can verify calculations in minutes rather than hours or days.
High-frequency data integration
The high-frequency data integration enables seamless handling of granular, hourly data from thousands of data sources. Users can set standard data quality rules to automatically or manually correct outliers, ensuring only accurate data is used. If high-quality data already exists in a data lake, APIs allow direct, rule-free transfers to trigger automated calculations. With a full audit log, SpheraCloud provides a traceable, single source of truth, giving organizations a transparent, automated data review and approval process.
Seamless data integration for ESG reporting
SpheraCloud Environmental Accounting and Corporate Sustainability Software integrate seamlessly to create a unified, verified source of emissions data, simplifying data management for sustainability teams. Environmental Accounting provides validated, audit-ready data on emissions, water, and waste, which flows directly into Corporate Sustainability for streamlined compliance and ESG reporting. This integration boosts data accuracy, transparency, and efficiency across the entire environmental data life cycle, from validation to sustainability disclosures, saving time and costs.
WHAT YOU NEED TO DO
Take action now!
We support comprehensive environmental and sustainability data requirements for regulatory reports, including EPA, CSRD and other disclosures, integrating both qualitative and quantitative data into unified reports. In high-emission industries, managing emissions transparency, vast data volumes, and auditability requires purpose-built software. Sphera’s Environmental Accounting software provides robust carbon accounting and ESG assurance, empowering companies to navigate complex regulatory demands with accuracy and confidence.
Discover how Sphera’s software can support your environmental accounting program and watch the on-demand webinar including a detailed software demo.
Download our recent white paper to read more on how Sphera’s Environmental Accounting Software can support organizations that require full transparency in emissions reporting and need to establish a clear, transparent and auditable record of their environmental impact.
If you are ready to take the next step toward a more sustainable future, schedule a meeting with one of our experts.
Disclaimer
The information provided in this blog is for general information purposes only, may not be updated in real time and does not constitute legal advice. Please consult with your legal and other advisors to discuss your particular needs and circumstances.
